Saudi Arabia has used Crown Prince Mohammed bin Salman’s high-profile visit to South Korea to sign contracts and preliminary agreements with Samsung, Hyundai Motor, and other businesses for investments in the Kingdom, including the huge NEOM smart city project.
Saudi Arabia’s Ministry of Investment struck an agreement with Hyundai Rotem, a Hyundai Motor business focusing on railways and the military, to collaborate in the construction of railways for NEOM, as well as the development of hydrogen-powered trains.
In total, 26 agreements were struck
Separately, the Public Investment Fund of Saudi Arabia has committed to working with construction and engineering firm Samsung C&T, a subsidiary of Samsung Group, to help create the kingdom’s new Qiddiya and Red Sea cities. In those projects, Samsung C&T will employ cutting-edge 3D modular construction engineering technologies.
The Saudi government and the South Korean corporations have not disclosed the value of the transactions, although analysts reported that each will be worth a few billion dollars. In total, 26 agreements were struck, which included the Lotte Group in chemicals and other enterprises in pharmaceuticals, video games, and transportation.
Saudi oil giant Aramco announced its ‘largest ever investment in South Korea
In addition, Saudi oil giant Aramco announced its ‘largest ever investment in South Korea through its S-Oil affiliate to build a new petrochemical factory in Ulsan. According to a press release from Aramco, the project is priced at $7 billion and is projected to be finished by 2026.
In a speech before the signings, South Korean Trade, Industry, and Energy Minister Lee Chang-yang stated that the two nations are commemorating “60 years of diplomatic ties this year” and urged more collaboration “based on trust that we have developed in the energy and construction industries.”